The Nigeria Employers’ Consultative Association (NECA) has called on the Nigerian National Petroleum Company Limited (NNPCL) to publicly disclose the full details of its newly signed refinery rehabilitation agreement with two Chinese firms, warning against another cycle of costly refinery revamp projects without measurable outcomes.
NNPCL had on April 30 signed a Memorandum of Understanding (MoU) with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd as part of efforts to advance the rehabilitation, completion and operation of the Port Harcourt and Warri refineries.
Reacting to the development, the Director-General of NECA, Adewale-Smatt Oyerinde, said Nigeria could no longer afford repeated refinery rehabilitation exercises that consume billions of dollars without delivering sustainable refining operations.
In a statement titled “Enough of MoU Governance and Failed Revamps on Port Harcourt and Other Refineries,”Oyerinde questioned the transparency surrounding the latest refinery agreement and urged NNPCL to provide detailed explanations regarding the structure of the partnership.
According to him, several rehabilitation efforts previously carried out on the Port Harcourt refinery failed to restore stable refining output despite substantial public spending over the years.
He noted that approving another refinery arrangement without resolving concerns surrounding previous expenditure and failed projects would undermine public confidence.
Oyerinde stated that Nigeria has already spent an estimated $25 billion on turnaround maintenance and refinery rehabilitation programmes with limited economic returns and little operational success.
He stressed that NNPCL must prioritise transparency, accountability and a commercially viable business model capable of ending the recurring pattern of failed refinery repairs.
The NECA chief also requested that the national oil company disclose the safeguards put in place to prevent delays, rising project costs and recurring operational setbacks that have historically affected refinery rehabilitation projects in the country.
He further demanded clarity on the proposed technical partnership structure, local content provisions and technology transfer components contained in the agreement with the Chinese companies.
According to Oyerinde, years of dysfunctional refineries have contributed significantly to rising energy costs, dependence on imported fuel and broader economic pressure on Nigerian businesses.
He reiterated NECA’s long-standing position that the country should consider privatising or concessioning the refineries instead of continuing with repeated turnaround maintenance arrangements.
The association maintained that any refinery rehabilitation effort must be built on transparent and sustainable commercial frameworks capable of restoring public trust and improving operational efficiency.
Meanwhile, NECA has also launched an Environmental, Social and Governance (ESG) Implementation Guide aimed at helping micro, small and medium enterprises improve sustainability standards and strengthen long-term competitiveness.
The initiative was developed in partnership with the International Labour Organization to support Nigerian MSMEs in integrating responsible business practices into their operations.
Speaking during the launch, Oyerinde said ESG principles have become increasingly important globally as investors, regulators and consumers place greater emphasis on sustainability and corporate responsibility.
He explained that many Nigerian small businesses still face challenges understanding and implementing ESG standards effectively, prompting NECA and its partners to design a practical framework tailored to local business realities.
According to him, the guide is intended to help businesses identify sustainability risks and opportunities while improving access to financing and market opportunities.
Oyerinde added that NECA would continue supporting businesses through training programmes, advisory services and partnerships designed to deepen ESG adoption across multiple sectors of the economy.
He also urged government agencies, financial institutions and development partners to create a more supportive environment for MSMEs seeking to transition toward sustainable business practices.
As part of the programme rollout, NECA reportedly conducted a capacity-building session involving selected participants to provide practical understanding of ESG implementation strategies within their organisations.